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Andersons Inc. – Grain and Field Bean Merchant Wholesalers
Founded in 1947 in Maumee, Ohio, The Andersons is a diversified company rooted in agriculture that conducts business in the commodity trading, ethanol, plant nutrient and rail sectors. Guided by its Statement of Principles, The Andersons strives to provide extraordinary service to its customers, help its employees improve, support its communities and increase the value of the company.
Analysis Results
Intrinsic Value $2,310.80
Latest Price $35.53
Relative Value 98% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 41.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 41.6%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 0.763 0.729
2023 1.08 0.987
2024 1.53 1.34
2025 2.17 1.81
2026 3.07 2.45
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 92.2 billion. This corresponds to a present value of 70.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 7.31 billion. Adding in the terminal value gives a total present value of 77.4 billion.

There are presently 33.5 million outstanding shares, so the intrinsic value per share is 2310.8.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,372,328,000
Current Cash 216,444,000
Current Liabilities 2,463,929,000
Current Debt 534,048,000
Non-Cash Working Capital (NCWC) 1,226,003,000
Change in NCWC 291,221,000
EBIT 173,787,000
Tax Provision 29,228,000
Depreciation and Amortization 178,934,000
Capital Expenditure -75,766,000
Unlevered Free Cash Flow 536,581,508
Current Assets 2,416,409,000
Current Cash 29,123,000
Current Liabilities 1,931,682,000
Current Debt 479,178,000
Non-Cash Working Capital (NCWC) 934,782,000
Change in NCWC 274,324,000
EBIT 6,353,000
Tax Provision -10,259,000
Depreciation and Amortization 188,638,000
Capital Expenditure -77,147,000
Unlevered Free Cash Flow 392,168,000
Current Assets 1,945,342,000
Current Cash 54,895,000
Current Liabilities 1,439,919,000
Current Debt 209,930,000
Non-Cash Working Capital (NCWC) 660,458,000
Change in NCWC 266,614,000
EBIT 73,691,000
Tax Provision 13,051,000
Depreciation and Amortization 146,166,000
Capital Expenditure -165,223,000
Unlevered Free Cash Flow 287,035,725
Current Assets 1,023,198,000
Current Cash 22,593,000
Current Liabilities 833,350,000
Current Debt 226,589,000
Non-Cash Working Capital (NCWC) 393,844,000
Change in NCWC 92,063,000
EBIT 71,274,000
Tax Provision 11,930,000
Depreciation and Amortization 90,297,000
Capital Expenditure -142,579,000
Unlevered Free Cash Flow 95,058,709
Current Assets 999,211,000
Current Cash 34,919,000
Current Liabilities 738,716,000
Current Debt 76,205,000
Non-Cash Working Capital (NCWC) 301,781,000
Change in NCWC 29,516,000
EBIT 47,592,000
Tax Provision -63,134,000
Depreciation and Amortization 86,412,000
Capital Expenditure -34,602,000
Unlevered Free Cash Flow 128,918,000
Current Assets 1,058,126,000
Current Cash 62,630,000
Current Liabilities 799,776,000
Current Debt 76,545,000
Non-Cash Working Capital (NCWC) 272,265,000
Change in NCWC 49,754,000
EBIT 36,832,000
Tax Provision 6,911,000
Depreciation and Amortization 84,325,000
Capital Expenditure -77,740,000
Unlevered Free Cash Flow 81,265,759
Current Assets 1,129,522,000
Current Cash 63,750,000
Current Liabilities 888,037,000
Current Debt 44,776,000
Non-Cash Working Capital (NCWC) 222,511,000
Change in NCWC 31,893,000
EBIT 69,648,000
Tax Provision -242,000
Depreciation and Amortization 78,456,000
Capital Expenditure -72,469,000
Unlevered Free Cash Flow 107,528,000
Current Assets 1,254,447,000
Current Cash 114,704,000
Current Liabilities 1,027,706,000
Current Debt 78,581,000
Non-Cash Working Capital (NCWC) 190,618,000
Change in NCWC 218,254,000
EBIT 174,781,000
Tax Provision 61,501,000
Depreciation and Amortization 62,005,000
Capital Expenditure -59,675,000
Unlevered Free Cash Flow 336,991,718
Current Assets 1,221,784,000
Current Cash 309,085,000
Current Liabilities 992,333,000
Current Debt 51,998,000
Non-Cash Working Capital (NCWC) -27,636,000
Change in NCWC -233,128,000
EBIT 155,497,000
Tax Provision 53,811,000
Depreciation and Amortization 55,307,000
Capital Expenditure -139,370,000
Unlevered Free Cash Flow -217,658,692
Current Assets 1,297,153,000
Current Cash 138,218,000
Current Liabilities 992,807,000
Current Debt 39,364,000
Non-Cash Working Capital (NCWC) 205,492,000
Change in NCWC -190,797,000
EBIT 127,563,000
Tax Provision 44,568,000
Depreciation and Amortization 48,977,000
Capital Expenditure -180,498,000
Unlevered Free Cash Flow -242,079,446

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